Sheet Metal Workers' International Association
Local Union No.73
Pension Welfare and Annuity Funds
How Is Pension Credit Determined?
How Is Pension Credit Counted before the Contribution Period?
How Is My Pension Credit Counted during the Contribution Period?
What Is the Maximum Number of Pension Credits I May Earn?
How Do I Earn Years of Vesting Service?
Are There Any Periods of Work Which Will Not Count toward a Year of Vesting Service?
What Is the Difference between Pension Credit and Years of Vesting Service?
Can I Lose Pension Credit and Years of Vesting Service?How Is Pension Credit Determined?
The monthly amount of pension benefit depends on the number of full years of pension credit. Pension credit is determined in THREE WAYS depending on whether it is (a) before January 1, 1950, the contribution date when employers were first required to make contributions to the Fund for an employee’s work; (b) after January 1, 1950 and before January 1, 1990; or (c) after January 1, 1990.
How Is Pension Credit Counted before the Contribution Period?
Pension credit before the contribution period is credited for work in covered employment before January 1, 1950 even though at that time no Pension Fund had been established and no money was being paid to cover the costs of the credits earned. If you were a member of the Union, you will receive credit for periods before January 1, 1950 during which you were a member of the Union or the International Association. If you were not a member, you will receive credit for work covered by the Union’s collective bargaining agreements, except for work for a government agency. One-quarter of a pension credit will be granted for each calendar quarter you worked at least 133 hours. You will receive a full pension credit if you worked at least 532 hours in a calendar year. If you worked for an employer who did not begin contributing to the Pension Fund for your work until after January 1, 1954, you will not receive any pension credit for employment with that employer prior to
the time contributions began.
Caution: If you work at least one hour of employment in the Sheet Metal Industry that is not covered by a Collective Bargaining Agreement between the employer and the Union at any time after December 31, 1989, you will not be entitled to receive any Past Service Credit under the Plan.
How Is My Pension Credit Counted during the Contribution Period?
Before 1990
During the contribution period and before January 1, 1990, you will receive 1/4 pension credit for each calendar quarter in which you have at least 133 hours of work in covered employment for which employer contributions are required to be paid to the Fund. If you work at least 532 hours in a calendar year before 1990 and contributions are required to be paid to the Pension Fund for that work, you receive a full pension credit for that calendar year.
Beginning in 1990
For work beginning January 1, 1990 and after, you will receive 1/12 pension credit for each 100 hours of work in a calendar year in covered employment for which employer contributions are required to be paid to the Fund, to a maximum of one pension credit for 1,200 or more hours.
Can I Earn Pension Credit When Not Actually Working in Covered Employment?
Yes, you will receive pension credit if you are absent from covered employment because of the following:
- Disability
If you have prior pension credit based on work during the contribution period and you become disabled, you will be granted non-work pension credits for the period of time you receive either Workers’ Compensation benefits (to a maximum of 2 pension credits for each such disability) or weekly accident and sickness benefits from the Sheet Metal Workers’ Local 73 Welfare Fund (to a maximum of 10/12 pension credits for each such disability). One week of weekly accident and sickness benefits equals 40 hours of work in covered employment.
- Military Service
You will be granted pension credits for certain periods of qualified military service in the Uniformed Services of the United States (up to the maximum permitted by Federal law) if:
- you worked and earned pension credit during the contribution period immediately prior to active duty in qualified military service, and you return to or seek work in covered employment within the time required by federal law.
For more information on credit for military service, please contact the Fund Office.
- Other service as follows:
- while a full-time elected officer or elected employee of the Union or the Sheet Metal Workers’ International Association,
- while a full-time Joint Apprenticeship Committee Coordinator (including full-time teachers), or while a full-time representative of the Energy Management Institute of Illinois during any periods in which contributions were not required to be paid to the Plan.
What Is the Maximum Number of Pension Credits I May Earn?
At retirement, all units of pension credit that, added together, equal a full pension credit will be counted.
On or after April 1, 1996
If you separate from covered employment and retire on or after April 1, 1996, there is no longer a limit on the number of pension credits which will be counted toward your pension.
Prior to April 1, 1996, the following limits applied:
Date of Separation from
Covered EmploymentMaximum Pension Credits Before January 1, 1982 25 January 1, 1982 to March 31, 1987 30
April 1, 1987 to March 31, 198831 April 1, 1988 to March 31, 1990 33 April 1, 1990 to March 31, 1991 34 April 1, 1991 to March 31, 1992 36 April 1, 1992 to March 31, 1993 38 April 1, 1993 to March 31, 1996 40
How Do I Earn Years of Vesting Service?
Years of vesting service are earned by your hours of work during the contribution period. In addition, if you work for a contributing employer in a job not covered by this Plan and that non-covered employment is continuous with (immediately before or after) covered employment with that employer, such hours of work will be counted towards years of vesting service. You must complete 870 hours of work in a calendar year to earn a year of vesting service. You will have a non-forfeitable right to a pension (or be “vested”) when you meet the requirements for a Deferred Pension. Special vesting rules will apply in the unlikely event that the Plan becomes “top-heavy” in accordance with IRS regulations. For more information regarding top-heavy rules, see the official Plan Document.
Are There Any Periods of Work Which Will Not Count toward a Year of Vesting Service?
Yes, you will not be credited with any years of vesting service prior to January 1, 1971 unless you earned at least 3 years of vesting service after December 31, 1970. Years of vesting service are earned only on or after January 1, 1950. (You can earn pension credit both before and after January 1, 1950). Hours of work completed before that period will not count toward vesting service.
What Is the Difference between Pension Credit and Years of Vesting Service?
There are a number of differences between pension credits and years of vesting service, as shown in the following chart:
Pension Credit Vesting Service Can be earned before and after January 1, 1950 Can only be earned after January 1, 1950 Can only be made for work in covered employment for which contributions are required to be made to the Plan Can be earned for work in covered and/or continuous employment Benefit amount is determined based on pension credits Benefit amount is not determined based on
years of vesting serviceA participant can qualify for a Regular, Early Retirement, Disability, Rule of 95 or Pro-Rata
(Reciprocal) Pension based on Pension CreditA participant can qualify for a Deferred Pension based on years of vesting service.
Can I Lose Pension Credit and Years of Vesting Service?
Yes. Because the Plan is designed to provide benefits to employees who have had continuing employment in the jurisdiction of the Fund, provisions have been made for cancellation of credit for employees who leave without meeting the minimum work requirements under the Plan. Such cancellation is described in the following section called “Breaks in Service.”
